Hi Anant: Please look at the "objects of the issue", it says 'to gain benefits of listing' Company didnt raise money, it was all secondary sale. SEBI mandates them to sell 25% minimum. This objective is meant for people who want to sell their stake paying STT thus saving capital gains. Surely we are looking at an eventual sale out in the company. Of course, promoter has a lock in and all that, but its clear why the listing happened. Given the margin profile, sale may happen at seriously high valuation.
My view on IPO valuation is that since the offer for sale is promoters own (last issue @ 192, see RHP) and its done at depressed valuation, likely to save capital gains for the seller.
On the burgeoning receivables what you say is only half the stories. The methods you indicating are accompanied by growth in sales which leads to believe the company is aggressively growing. This is a company which supplies to capital good and auto industry, and we all know how the topline growth scenario has been off late.
Regards, Nakul Sarda +91 97021 77729
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